The drop in oil production, despite the fact that there are sufficient reserves in the area, is caused only by infrastructure constraints that hamper commercial development of new deposits

YEKATERINBURG, November 9. /TASS/. Oil production on the Yamal peninsula in Russia’s Arctic region may drop by 4% year-on-year in 2015 to 20.7 million tons, Dmitry Kobylkin, governor of the Yamal-Nenets autonomous district, told TASS.

"In 2014, 21.5 million tons of oil were produced in the district, in 2015 we expect 20.7 million tons (96% of the 2014)", he said.

According to the governor, volumes of oil and gas production depend on objective factors.

"In particular, while the gas sector has a reserve of mining and infrastructure capacities, the level of natural gas production is determined solely by the needs of the domestic and European markets. The drop in oil production, despite the fact that there are sufficient reserves in the area, is caused only by infrastructure constraints that hamper commercial development of new deposits," Kobylkin said.